Every organization in the world is working towards the achievement of Sustainable Development Goals (SDG). This report will discuss some of the actions that the BT Financial Plc can take to achieve the sustainable development goals through Corporate Social Responsibility (CSR). CSR can be used to satisfy both social and environmental standards. This report provides an analysis of how BT Financial Plc uses SDGs as a framework for working out a CSR strategy.
The report has analyzed each action proposed and suggested how they conform to the corporate social responsibility and assist in the realization of the SDGs. Some of the action indicated in this report are participating in activities that promote environmental sustainability, the creation of jobs through economic growth and being philanthropic. Every suggestion made in this report are backed by facts that are verifiable.
Introduction
Corporate Social responsibility is one of the surest way businesses of realizing sustainable development goals in the world today (Rondinelli and Berry 2000, p.76; Garriga and Melé 2004, p.59). The purpose of CSR was clear since it was framed by in the early 1950s. From Bowen's definition of corporate social responsibility in 1953 as "an obligation to pursue policies to make decisions and to follow lines of action which are compatible with the objectives and values of society.” It is clear that as companies are looking for ways of making maximum profit and dominate the market, they must not forget to give back to the surrounding community (Garriga et al. 2004, P.53).
Social responsibility assumes that corporate firms must extend their economic and legal duties to the society and the surrounding community. According to Carroll and Shabana (2010), there is four key component of corporate social responsibility, namely, ethical, economic, legal and unrestricted expectations the society has on the firm.
The values four components of CSR directly conform to the elements of the sustainable development goal adopted in September of 2015 by almost 193 countries. Consequently, CSR can be used as a strategy for meeting the three SDGs dimensions, that is, environmental protection, economic growth, and social inclusion. Some of the specific areas that SDGs is seeking to address our economic growth, climate change, inequality and poverty eradication (Griggs et al. 2013, p.56). BT Financial Plc can take some specific action discussed herein to meet the SDGs through CSR.
Actions to address Sustainable Development Goals
One of the steps that BT Financial can take to help in the realization of the SDGs is to ensure the constant economic growth of the company through proper organizational management. One of the seven pillars of Corporate Social Responsibility is organization health (Chapple and Moon 2005, p.421). Through good management and consistent growth and development of the company, BT Financial will have the capacity to employ more people and create more jobs.
Some skeptics, especially those that have a neoclassical view of economics may have a different opinion on this point. For example, Friedman (1962) thinks that the sole social responsibility of businesses is to improve productivity and increase profits provided that it competes fairly and within the rules of the market. However, their opinion contradicts the values and principle of both CSR and SDGs. According to Griggs et al. 2013, corporate firms should use their desire of making profits to expand their market structure, create more jobs and contribute to industrial growth as well as urbanization.
Secondly, BT Financial Plc can take an active part in supporting the less privileged and the disadvantaged people in the society. While this may sound like charity donation, a financial contribution to a course is part of the seven principles of CSR (Jamali and Mirshak 2007, p.251). One of the simplest ways of financing a course is through philanthropy. Philanthropy is a direct way of getting in touch with the surrounding community and achieving good corporate citizenship.
Research has shown the companies that give back to the society are the most preferred compared to those that do not (Tai and Chuang 2014, p.117; McWilliams 2015, p.3). Therefore, as the companies give back to society, they also gain directly be earning public confidence as well as good corporate citizenship. Today, the money is not the only ways of giving back to society. Many companies have opted to give back their time through community outreach and extension services.
BT Financial Plc has already supported 10 million disadvantaged people. The companies also support volunteers from recognized community groups to take part in various paid company activities. Moreover, the company makes an active role in "fundraising initiatives such as Australia’s Biggest Morning Tea (Bt.com.au 2018). However, the company can still conduct more outreach activities that benefit the community.
Thirdly, BT Financial Plc can contribute to the achievement of sustainable development goals by investing in businesses the focus of socio-economic and environmental dimensions. Some of the 17 sustainable development goals set-up as the global priority for vision 2030 are responsible consumption and production and climate action (United Nations Sustainable Development, 1992, p.66). These goals are supported by one of the seven pillars of corporate social responsibility, that is, environmental sustainability.
In general, Environmental sustainability involves creating a “good relationship” between human beings and the earth. The only way of ensuring environmental sustainability is by using resources effectively in a way that does not impact negatively on the environment. Many companies are flying the ecological sustainability flag high by using renewable energy, minimizing pollution, reducing carbon footprint, creating eco-villages et cetera.
BT Financial Group to has come up with some strategies for making the environment more sustainable. First, BT Financial Plc, through its affiliate company Westpac Group has consistently worked on programs of reducing the global warming to less than two degrees Celsius. Secondly, the company is one of the signatories of the PRI’s Montreal Carbon Pledge that is working tirelessly to reduce the number of carbon emissions into the atmosphere. Although the company has taken a forward step, it can still initiate various programs such as the promotion of the use of green energy to assist in the realization of the SDGs.
Conclusion
BT Financial has made a tremendous effort to ensure that it is socially responsible. Some of the strategies that the company has used include promotion of education by sponsoring over five million youths to get a technical education, creating sustainable wealth solution and investing responsibly by putting both environmental and social factors into consideration (Bt.com.au 2018). However, BT financials can take the actions suggested in this report to help in the realization of SDGs. Implementation of the recommendations made in this report will not only assist in the achievement of sustainable goals but also improve the company's overall productivity, directly or indirectly.
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